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As for spyware and everything else... come on! if firefox got a 99% share of the market, do people really think that people will not start to hack that instead of IE?
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Of course, but without the scourge of activeX, it is much less likely that they will accomplish the exploits they have made with IE. MS should use their considerable muscle for good, and deprecate ActiveX in favor of something more secure (isn't .NET supposed to be the answer here? It has much the same capabilities and, from what I've heard, is much more secure).
No browser, security measure, operating system, or any other software will protect a stupid user from himself. There already is spyware running around in XPI form to infect Mozilla browsers. Some of it actually simply uses XPI as a springboard to launch those IE exploits which don't even require IE to be running. None of it, however, installs itself without user intervention.